From: LUCRESIA P.

LLANA
BCRM-Clh Ramon National High Way

Date: November 20, 2020

Subject: Explanation Letter Re: Show Cause Memo dated 11/18/2020

To: JEREMIAS P. ULANDAY

Area Head, A203

Sir:

I was required to submit a written explanation on the offense stemmed from the alleged
failure to follow or implement company directive, policies, rules and regulations not
falling under the offense of insubordination.

A perusal of the records attached to the Show Cause Memo dated 11/18/2020, the alleged
offense was anchored from the non compliance on application of twenty (20%) percent
reduction of acceptance rate in principal at the time when Ms. Marie Antonette Cajugao
pawned jewellery items on August 19, 2019 and the non monitoring and reporting of
dumpers as a result of the successive pawned transactions of the said client.

With all due respect, at the time of the transaction, I noticed from the Customers
Relationship Management System (CRMS) that Ms. Cajugao is neither new clients nor a
first time customer of Cebuana. Her complete details and information were already
recorded in the CRMS at that time. Thus, there is a conclusive presumption that Ms.
Cajugao had already transacted to other branches of Cebuana. For that reason, I accepted
the pawning transaction of Ms. Cajugao without any reduction from the principal amount.

I was fully aware that if indeed Ms. Cajugao is identified as a “DUMPER”, she could
have been automatically tagged as a “High Risk” in the CRMS to warn the branches for
her succeeding transactions. However, despite the first pawning transaction of Ms.
Cajugao at Clh San Mateo on August 19, 2019 and from the other Cebuana branches,
there was no indication or warning from the CRMS showing that the said client was
considered as a “High Risk” for her succeeding pawning transaction.

Most importantly, considering that Ms. Cajugao had no item pull out history at that time
and that her items were all saleable according to my assessment, I accepted her pawning
transactions to meet the required monthly branch target for prenda transactions.

From the above disquisitions, I respectfully moved that the alleged offense covered by
the Revised Employee Code of Conduct and Discipline be dismissed for lack of merit.

Thank you and Stay Safe.

Sincerely yours,

LUCRESIA P. LLANA